COMMON TERMINOLOGY FOR SELLERS • Appraisal - A document of opinion of property value at a specific point in time. 1 • “As Is” - A contract or offer clause stating that the seller will not repair or correct any problems with the property. Also used in listings and marketing materials.1 • Back-up Offer - When an offer is accepted contingent on the fall through or voiding of an accepted first offer on a property. 1 • Buyer’s Agent – The agent who shows the buyer’s property, negotiates the contract or offer for the buyer, and works with the buyer to close the transaction. 1 • Closing - The end of a transaction process where the deed is delivered, documents are signed, and funds are dispersed. 1 • Closing Costs – The fees paid at the closing of a real estate transaction. 1 • Comparative Market Analysis - A study done by real estate sales agents and brokers using active, pending, and sold comparable properties to estimate a listing price for a property. 1 • Contingency - A provision in a contract requiring certain acts to be completed before the contract is binding. 1 • DOM - Days on Market. 1 • Dual Agency - The representation of opposing principals (buyers and seller) at the same time. 1 • Due Diligence - The process of gathering information about the condition and legal status of assets to be sold. 1 • Earnest Money Deposit - The money given to the seller at the time the offer is made as a sign of the buyer’s good faith. 1 14
• ESCROW – A bond, deed, or other document kept in the custody of a third party and taking effect only when a specified condition has been fulfilled.2 • Home Inspection – A home inspector examines your home for integrity (HVAC system, electrical, plumbing, attic, flooring, foundation, etc. 1 • Listing Agent - The agent that represents the home seller during a real estate transaction. 1
• List Price - The price of a property through a listing agreement. 1 • Market Value - The highest price in terms of money which a property will bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. 1 • Multiple Listing Service (MLS) - A service that compiles available properties for sale by member brokers. 1 • Pre-Approval - A higher level of buyer/borrower prequalification required by a mortgage lender. Some preapprovals have conditions the borrower must meet. 1 • Pre-Qualification - The mortgage company tells a buyer in advance of the formal mortgage application, how much money the borrower can afford to borrow. Some pre-qualifications have conditions that the borrower must meet. 1 • REALTOR - A registered trademark of the NATIONAL ASSOCIATION OF REALTORS that can be used only by its members. 1
Sources: REALTOR Magazine | Real Estate Glossary (https://magazine.realtor/tool-kit/rookie/article/2020/02/real-estate-glossary)1 Dictionary.com (https://www.dictionary.com/)2
